The North American Free Trade Agreement established processes that have substantially reduced transborder pollution along the Mexico-U.S. border.

Rents represent earnings that

a. exceed marginal cost b. are less than marginal revenue product c. are less than what producers would require to supply products d. exceed opportunity revenue e. exceed opportunity cost

Good Boy Super Treats produces healthy treats for dogs. At its current advertising level, Good Boy Super Treats marginal cost of advertising is $1 million and their marginal benefit is $1 million. Which of the following is true?

A) If the firm increases the amount of advertising, its net profit will increase. B) The firm should increase the amount of advertising to increase its net profit. C) The firm is currently maximizing its net profit. D) If the firm decreases the amount of advertising, its net profit will increase.